Battery metals, a key component in the production of batteries for various technologies such as electric vehicles (EVs) and renewable energy storage systems, have become extremely critical as companies strive to achieve their greenhouse gas (GHG) emissions targets and minimize negative impacts to the environment.
While metals such as lithium, cobalt, and nickel typically garner the most headlines, there are a number of additional metals (e.g., manganese, aluminum, and zinc) that make up the chemistry of current batteries. Unless alternative chemistries are discovered, ensuring there is sufficient supply of these minerals will be essential in creating the technology required to achieve net zero emissions in the post-carbon economy.
Over the next decade, the demand for critical battery metals will continue to rise as the disruptive effects induced by the COVID-19 pandemic begin to recede and the pace of EV adoption accelerates. Government-mandated policies such as carbon taxes are forcing corporations and individual citizens to transform their ways of life, especially in Europe and North America. Recent forecasts indicate that some metals may be in a deficit as soon as 2024 and continue on that path unless new mines are commissioned or production expanded at existing operations. As new mines (and the downstream refining facilities required) take years to bring online, the deficit will impact both the raw material producers and their customers in the form of higher prices.
Alternatives to EVs, such as vehicles powered using hydrogen, light natural gas, or biodiesel carry either a lower GHG abatement potential or lower technology readiness level. Thus, EVs will continue to feature prominently in the near- to mid-term.
As with most minerals, worldwide in situ distribution of battery metals does not necessarily align with the consumption requirements of a specific country or region. Countries are increasingly developing strategies to protect national interests by limiting access to both the raw and refined versions of battery and other critical metals. Not only will this help minimize the reliance on imports (where feasible), but it can also provide internal economic boosts through job creation. Critics argue such strategies may be damaging if environmental regulations are loosened in order to expedite permitting; however, increasing sustainable production in jurisdictions with mature and well thought out mining regulations can remove so-called “conflict minerals” from the supply chain.
SRK provides expertise on battery metals, beginning from the exploration stage, through permitting and production, and finally into the closure and remediation of mine sites. This newsletter highlights a few of the topics SRK has assisted clients on in order to maximize their deposits of battery metals.
